The most expensive compliance risk is often the one you've already paid for. For large companies, that risk increasingly lives not on the payroll, but inside the fine print of supplier contracts, statements of work, and master service agreements, where legions of external workers operate without formal visibility. A UK startup, CoComply, is betting that the first step to managing this risk isn't more policy, but a complete map.
Founded in 2019 and operating from Alderley Park, CoComply has built a SaaS platform designed to identify these hidden contractors and automate the compliance checks they trigger. The company recently closed a £1.9 million (approximately $2.4 million) seed round led by NPIF II-Mercia Equity Finance, with participation from Haatch and others, to accelerate its push [Tech Funding News, October 2026]. Its reported customer list, which includes names like Aston Martin and video game publisher Take-Two, suggests it's finding a receptive audience among companies with complex, distributed workforces [Tech Funding News, October 2026].
The wedge is visibility, not just management
CoComply's pitch starts with a simple, pragmatic problem: most enterprises cannot accurately count, let alone classify, every person performing work on their behalf. The platform uses AI-driven analysis to scan procurement and HR systems, surfacing individuals embedded within supplier engagements [Marketscreener, October 2026]. Once identified, the system applies rules to determine their engagement status and flags necessary checks for regulations like the UK's IR35 tax rules, Right to Work, and modern-slavery legislation [Tech Funding News, October 2026].
The key differentiator, according to the company, is that it combines this automated discovery with specialist governance support, positioning itself as a decision and audit layer that sits across HR, procurement, and finance teams [cocomply.co.uk]. This is a step removed from pure contractor management systems (like Deel or Remote), which typically onboard workers a company already knows it has. CoComply is trying to find the workers it doesn't.
A founder who knows the territory
The company's trajectory is tied to founder and CEO Michael Cleavely, a serial entrepreneur from the recruitment and workforce sector. His prior venture, workforce consultancy Triple Seven, was acquired by Experis, the professional resourcing arm of ManpowerGroup, in 2014 [BizzTor, October 2026]. That exit provides a relevant track record, not just in building a business, but in navigating the complexities of contingent labor. Co-founding CoComply with him are David Hood, a fellow Triple Seven co-founder, and Chris Jones, who provides HR consultancy services [CalvinAyre.com, January 2014] [Professionals UK].
This background in services is reflected in CoComply's hybrid model. Alongside its software platform, the company offers standalone services like historic IR35 audits and training [cocomply.co.uk]. For a compliance product selling into risk-averse enterprises, this services wrapper can be a critical wedge, offering hands-on remediation before transitioning to a software-led, ongoing governance motion.
Traction and the seed round's purpose
The recent seed funding is earmarked for product development and geographic expansion, both within the UK and internationally [FinTech Global, October 2026]. The company reports serving customers ranging from mid-market firms to FTSE 100 organisations [Marketscreener, October 2026]. Headcount figures vary across sources, but point to a small, focused team likely in the low teens, which is consistent with an early-stage business investing heavily in product and initial sales [Sesamers, October 2026].
| Investor | Role |
|---|---|
| NPIF II-Mercia Equity Finance | Lead Investor |
| Haatch | Participant |
| SFC Capital | Participant |
| Haatch's Founder Fund | Participant |
| Richard Law, Seb Timpson, Stephen Cann | Angel Investors |
Table: Participants in CoComply's £1.9 million seed round, according to company reports [credx.media].
Where the wheels could come off
The bet is clear, but the path to scale carries familiar enterprise SaaS challenges. The market for compliance software is crowded, and CoComply must clearly communicate where it fits alongside,or replaces,existing point solutions. Furthermore, its AI-driven discovery is only as good as its integrations and the data it can access; incomplete system connectivity could leave blind spots that undermine the core value proposition.
Perhaps the most significant question is about the renewal motion. Compliance is often viewed as a periodic project, not a continuous process. To build a high-retention SaaS business, CoComply must convince customers that workforce risk management is an ongoing operational necessity, not a one-time audit. The company's answer appears to be positioning the platform as the central system of record for all external workforce decisions, a sticky layer woven into multiple departments' workflows [cocomply.co.uk].
The realistic competitive set
For the Head of Procurement or Chief Risk Officer evaluating CoComply, the competitive frame isn't monolithic. They are likely weighing a mix of solutions, each addressing a different part of the problem.
- Specialist contractor management platforms. Tools like Deel and Remote excel at onboarding, paying, and managing contractors you directly engage. They are peers for the management phase but do not proactively discover hidden workers in supplier contracts.
- Broad HR Information Systems. Workday or SAP SuccessFactors have modules for contingent workforce management, but their depth and specialized focus on the discovery and classification of third-party embedded workers can be limited.
- Manual processes and consultancies. The incumbent is often a combination of spreadsheets, periodic legal reviews, and expensive advisory firms. CoComply's software-and-services model aims to productize and scale this approach.
CoComply's ideal customer profile is a UK-headquartered enterprise with a material spend on professional services and technology suppliers, where the finance, legal, and HR departments are feeling heightened pressure from regulators on tax and employment classification. The platform offers them a chance to move from reactive, penalty-driven compliance to a controlled, documented process. For now, the company has a clear wedge and a founder who knows the terrain. The next twelve months will be about proving that its map of the invisible workforce is indispensable enough to become a permanent line item.
Sources
- [Tech Funding News, October 2026] UK RegTech CoComply raises £1.9M from Mercia and Haatch to expose hidden contractors | https://techfundingnews.com/uk-regtech-cocomply-raises-1-9m-from-mercia-and-haatch-to-expose-hidden-contractors/
- [Marketscreener, October 2026] Mercia Asset Management: RegTech raises £1.9m to manage external workforce compliance risk | https://www.marketscreener.com/news/mercia-asset-management-regtech-raises-1-9m-to-manage-external-workforce-compliance-risk-ce785cdbd88ffe21
- [cocomply.co.uk] Workforce Visibility & Contractor Compliance Platform | https://cocomply.co.uk/
- [BizzTor, October 2026] CoComply Raises £1.9M Funding to Track Hidden Contractor Risk | https://bizztor.com/news/cocomply-raises-1-9m-funding/
- [CalvinAyre.com, January 2014] Experis takes majority stake in iGaming specialists Triple Seven Resources | https://calvinayre.com/2014/01/14/press-releases/experis-majority-stake-triple-seven-resources
- [Professionals UK] Chris Jones is a Director at CoComply | https://professionalsuk.co.uk/company/cocomply-limited
- [FinTech Global, October 2026] CoComply raises £1.9m to expose hidden workforce risk | https://www.fintech.global/2026/10/20/cocomply-raises-1-9m-to-expose-hidden-workforce-risk/
- [Sesamers, October 2026] CoComply raises £1.9M for external workforce compliance | https://www.sesamers.com/funding/cocomply-raises-1-9m-external-workforce-compliance/
- [credx.media] CoComply Raises £1.9M ($2.4M) to Expose Hidden Contractors in Supply Chains | https://www.credx.media/articles/cocomply-funding-1-9m-seed-hidden-contractors-ir35